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Design and planning process for future supply chains

Black Rock, the world’s largest fund manager has stated that the crisis will fundamentally reshape business practices, society and consumer habits – rethinking the way people work, shop, travel and gather. There will be a ‘new normal’ way of functioning and businesses will need to adapt. And the timeline for recovery could be long. The investment bank, Morgan Stanley warns in a recent newsletter of no quick return to ‘business as usual’ in the US: “…we see 2Q20 GDP contracting as much as 45%, followed by a soft 3Q and a rebound in activity in 4Q20 and into 2021…even with the expected rebound, the level of output (in the US) at the end of 2021 in our bear case remains 11.5% below its pre-recession peak”. The political and financial decisions made by governments during and following the crisis could influence economies for at least 10 years.

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Weber Logistics

Founded in 1924, Los Angeles-based Weber Logistics is the leading logistics provider on the West Coast and has evolved into a nationwide provider of logistics solutions. We are a privately-owned and asset-based provider. This allows us the flexibility to quickly adapt to our customer's changing needs.

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Supply Chain

Purchasing vs. Supply Chain Management software

Article | August 17, 2023

Purchasing software and supply chain management software are often mistaken for one another, but both have distinct functionalities. While purchasing software automates the procurement process, supply chain management software executes logistical transactions and manages supplier relationships. This report identifies the similarities and differences between the two software categories to help you understand which one is better suited to your needs. What is purchasing software? Purchasing software is an online tool that allows businesses to automate the process of procuring goods and services. It includes security compliance and reporting features. Purchasing solutions offer integrated tools for invoice approval, inventory control, asset management, customer service, and work order management. They help manage contracts, analyze spending, track sales deliveries, and monitor inventory levels. They also assist in identifying bottlenecks in the purchase process, such as functions that have high expenditure. Purchasing software offers invoice processing capabilities as well. Procurement professionals and accounting teams can use the tool to generate invoices, track invoice status, and monitor expenses via detailed reports. What is supply chain management software? Supply chain management software is a software platform that allows supply chain managers to automate the entire supply chain process—from acquiring raw materials to delivering the finished goods to consumers. The software provides tools for monitoring stock levels, including raw materials, and predicting future requirements based on the current inflow and outflow of inventory. Supply chain management tools manage material handling, order fulfillment, and information tracking for stakeholders such as manufacturers, suppliers, and transport and logistics providers. They also track the returns of damaged goods, process refunds and insurance claims, and provide planning and forecasting tools for supply chain professionals. What do they have in common? Purchasing is a crucial component of supply chain management. Together, these processes significantly contribute to an organization’s procurement cycle. Despite the functionality differences, both the software categories have a few features in common, including supplier management, order management, and forecasting. Which tool is right for you? The answer to this question depends on your use case. If you’re looking for a tool that majorly focuses on acquiring supplies, opt for a purchasing software solution, as it will help you streamline the procurement cycle, maintain purchase order accuracy, and monitor supplier activities. However, if you wish to manage your entire supply chain operations, including supplier, transportation, warehouse, and inventory management, then investing in a supply chain software solution would be the right choice.

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Warehousing and Distribution

Transform Supply Chain with Effective Demand Forecasting Techniques

Article | June 16, 2023

Efficient demand forecasting techniques transform supply chain management, help optimize inventory levels, streamline operations, improve customer satisfaction, and achieve a competitive edge. Contents 1. How Accurate Demand Forecasting Impacts Business Operations and Profitability? 2. Navigating the Pitfalls of Traditional Demand Forecasting 2.1 Limitations of Manual Forecasting Methods 2.2 Inaccuracy and Inconsistency in Demand Prediction 2.3 Multiple Products and Markets Challenges 2.4 Influence of External Factors on Demand Forecasting 3. Advanced Demand Forecasting Techniques for Supply Chain Management 3.1 Statistical Forecasting 3.2 Collaborative Demand Planning 3.3 Demand Sensing and Real-time Data Analytics 3.4 Agile Supply Chain Management Practices 4 Summing up 1. How Accurate Demand Forecasting Impacts Business Operations and Profitability? Accurate demand forecasting plays a vital role in determining the operations and profitability of a business. By anticipating future demand, companies can more effectively plan their production, inventory management, and supply chain activities to meet customer needs while minimizing costs. Additionally, accurate demand forecasting can aid businesses in enhancing customer satisfaction by proactively meeting customer needs and expectations, improving customer experiences and increasing customer loyalty. To generate actionable insights that drive informed decision-making, businesses must leverage advanced analytics and predictive modeling techniques that combine data from various sources with industry-specific knowledge and expertise. “Businesses that leverage advanced analytics and predictive modeling techniques for demand forecasting report an average of 5% improvement in their supply chain efficiency.” (Source: A survey by Deloitte) Supply chain businesses frequently rely on sales data from the past, which may not be sufficient in the complex and rapidly changing business environment. Businesses might not observe an improvement in operations and profitability if they rely solely on conventional methods. 2. Navigating the Pitfalls of Traditional Demand Forecasting As businesses strive to optimize their supply chain operations and meet customer demand, traditional demand forecasting methods can often hinder their efforts. In this context, it is essential to navigate the pitfalls of such techniques to achieve success in supply chain management. 2.1 Limitations of Manual Forecasting Methods Manual forecasting methods have limitations that can affect demand forecasting accuracy in supply chain management. Frequently based on historical data, these methods can overlook emerging trends in supply chain management and alterations in customer behavior. In addition, manual processes are time-consuming, prone to error, and incapable of incorporating real-time supply chain data. As a result, businesses struggle to optimize supply chain operations and meet customer demand. In addition, traditional forecasting methods can influence the ability to accurately predict demand, resulting in overstocked inventory, delivery delays, and, ultimately, poor customer satisfaction. Inaccurate demand forecasts can also result in poor purchasing decisions and increased carrying costs, negatively impacting profitability. 2.2 Inaccuracy and Inconsistency in Demand Prediction Inaccuracy and inconsistency in demand forecasting pose significant obstacles in managing the supply chain. This is the case in the dynamic business environment, where market conditions can change rapidly, making it challenging for companies to keep up with shifting demand patterns. As traditional demand forecasting methods depend heavily on historical data, they produce inaccurate forecasts that do not reflect real-time market changes. In addition, inconsistency in demand forecasting can also result in a mismatch between supply and demand, leading to missed opportunities or excess inventory. As a result, creating an effect on company’s bottom line in addition to customer satisfaction. 2.3 Multiple Products and Markets Challenges Accurate demand forecasting is crucial to the success of supply chain management. When there are multiple products and markets to manage, it becomes a challenge for traditional demand forecasting. Different products and markets may have varying demand patterns and drivers, making it difficult for businesses to accurately forecast demand. Manual processes and siloed data can hinder visibility and the ability to identify cross-product or cross-market trends, making supply chain optimization operations and meeting customer demand more complex. Managing multiple products and markets is one of the challenges of traditional demand forecasting when businesses operate in various markets with varying customer preferences and demand patterns for products. 2.4 Influence of External Factors on Demand Forecasting External factors can significantly impact the demand forecasting accuracy for supply chain optimization. These factors are often unpredictable, and conventional methods may not account for them. The external factors affecting the supply chain include natural disasters, economic recessions, and sudden changes in consumer behavior. In addition, political and regulatory modifications, such as tariffs or trade agreements, can affect the supply and demand of particular products. Therefore, businesses must incorporate these external factors into their demand forecasting models and advance the process, as traditional demand forecasting methods cannot predict accurate future demand patterns and ensure optimal supply chain operations. 3. Advanced Demand Forecasting Techniques for Supply Chain Management To avoid the above-mentioned pitfalls, companies need to adopt advanced demand forecasting techniques that enable capturing and analyzing huge data from various sources to generate accurate and real-time demand forecasts. 3.1 Statistical Forecasting Statistical forecasting is an advanced method for demand forecasting in supply chain management that utilizes complex algorithms and statistical models to analyze historical data, identify trends, and generate forecasts. This method employs numerous statistical techniques, including regression analysis, time-series analysis, and exponential smoothing, among others. Statistical forecasting can help businesses overcome some of the limitations of traditional manual forecasting methods because it is more objective, data-driven, and capable of identifying trends and patterns which are not apparent with manual forecasting methods. As a result, by utilizing statistical forecasting, businesses can increase demand forecasting accuracy, optimize inventory management, and better align supply and demand, resulting in enhanced customer satisfaction, greater efficiency, and lower costs. 3.2 Collaborative Demand Planning Collaborative Demand Planning combines intensive forecasting algorithms to predict future demand and a set of ML techniques to achieve better demand forecasting. It involves collaboration between suppliers, customers, and other stakeholders. The advanced data and insights sharing technique improve the comprehensive understanding of demand drivers and trends, leading to more accurate demand forecasting. The collaborative approach enables real-time adjustments to demand forecasts, which can help businesses respond promptly to market conditions and customer demand changes. In addition, using advanced analytics and machine learning algorithms can help identify patterns and trends that would otherwise go unnoticed. That enables businesses to optimize inventory levels, reduce under and overstocking, and enhance customer service levels. In the dynamic business environment, it helps transform the supply chain that is better equipped to meet the ever-changing demands of customers. 3.3 Demand Sensing and Real-time Data Analytics Demand Sensing and Real-time Data Analytics are advanced demand forecasting techniques that can assist businesses in overcoming the challenges that multiple products and markets pose to the supply chain. By utilizing real-time data from various sources, such as social media, point-of-sale systems, and weather reports, businesses can better understand customer demand patterns, adjust inventory and production planning, reduce delay, and increase responsiveness. In addition to implementing demand sensing, businesses can begin with sell-in data obtained from supply chain planning or an ERP system in supply chain management and then incorporate all relevant data sources and external factors to broaden the forecasting horizon. 3.4 Agile Supply Chain Management Practices Agile supply chain management practices are a collection of methodologies and strategies emphasizing supply chain operations' adaptability, responsiveness, and flexibility. These practices involve utilizing real-time data analytics, collaborative planning, and other advanced technologies to enable businesses to respond swiftly to changes in customer demand, market conditions, and other external factors. Adopting an agile model allows the organization to act swiftly and decisively and achieve successful business outcomes despite adverse conditions. Agile supply chain management practices can give companies greater visibility and control over their supply chains, enabling them to adapt more effectively and efficiently to fluctuating market conditions in the context of external factors influencing demand forecasting. By cultivating a culture of continuous improvement, innovation, and customer value, agile supply chain management practices have the potential to transform into modern supply chain. 4. Summing up Demand forecasting accuracy is crucial for supply chain management and profitability. Manual forecasting methods hinder operational optimization and customer demand fulfillment. Customer satisfaction, purchasing decisions, and carrying costs suffer from inaccurate forecasting. In order to avoid these pitfalls, businesses can leverage statistical forecasting and collaborative demand. These methods recognize trends and patterns, optimize inventory levels, reduce over- and under-stocking, and improve customer service using advanced analytics and machine learning algorithms. As the supply chain evolves and becomes more complex, businesses must adopt advanced demand forecasting techniques. Implementing these techniques will enable businesses to optimize their supply chain management by better-aligning supply and demand, resulting in increased productivity, decreased costs, and ultimately increased profits.

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Warehousing and Distribution

How to Maximize Efficiency with Supply Chain Planning Systems?

Article | July 11, 2023

Automated supply chain planning maximizes efficiency and helps achieve long-term success by addressing challenges, highlighting the benefits, and offering insights to optimize business performance. Contents 1 Supply Chain Planning System Efficiency Maximization 2 Key Steps of Supply Chain Planning to Boost Efficiency 2.1 Implement Advanced Analytics Tools 2.2 Streamline Communication and Collaboration 2.3 Automate Processes 2.4 Consistency in Performance Improvement 3 Overcoming Major Challenges in the Process to Maximize Efficiency 3.1 Resistance to Change 3.2 Legacy Systems and Siloed Data 3.3 Inadequate Funding 4 Conclusion 1 Supply Chain Planning System Efficiency Maximization To compete and succeed in an ongoing complex and dynamic global market, companies must maximize the efficiency of their supply chain planning systems, which help manage the flow of goods and services from suppliers to customers, optimize resources and information to meet customer demands and minimize costs and risks. An adequate supply chain planning system can increase customer satisfaction, profitability, agility, and risk management. Moreover, by reducing costs, increasing productivity, and enhancing responsiveness to market demands, maximizing efficiency can help businesses remain competitive. As a result, businesses can gain a substantial competitive edge and position the organization for long-term success by optimizing their supply chain planning systems. 2 Key Steps of Supply Chain Planning to Boost Efficiency Businesses can significantly boost efficiency in their supply chain planning by implementing advanced analytics tools, streamlining communication and collaboration, automating processes, and ensuring consistency in performance improvement. 2.1 Implement Advanced Analytics Tools Implementing advanced analytics in supply chain planning is key to improve supply chain efficiency. Advanced analytics tools, including demand forecasting, production planning and inventory management, can help organizations leverage large volumes of data to extract insights that enable better decision-making. The insights can be used to optimize production planning, reducing costs and increasing efficiency. In addition, it also enables businesses to detect and respond to supply chain disruptions on operations. 2.2 Streamline Communication and Collaboration Managing and streamlining communication becomes essential for supply chain businesses, as it leads to greater agility and enables pipelines to adapt to changes in organizational structures. Leveraging cloud-based communication platforms, video conferencing, and collaboration tools enable real-time information sharing and collaboration across different teams and stakeholders. By enhancing communication and collaboration, businesses can better align their supply chain objectives, reduce communication gaps, and enhance decision-making. 2.3 Automate Processes The integration of technologies such as order processing, inventory management, and shipment tracking under warehouse automation and logistics automation produces a vast amount of data, making it challenging for businesses to process data manually. To enhance efficiency, automating supply chain planning processes has become essential. Automating the process has eliminated multitasking, including managing goods flow, tracking road progress, and ensuring safe delivery, which was previously required in the manual process. By automating processes, supply chain management can be streamlined, leading to reduced lead times, minimized costs, and improved efficiency. 2.4 Consistency in Performance Improvement Improving the supply chain is not a one-time fix, but a process that must be reviewed and optimized frequently. By implementing technology, businesses can continuously collect and analyze warehouse inventory management performance to identify areas for further efficiency gains and improved order accuracy. In addition, establishing a framework for continuous optimization involves regular performance reviews, feedback mechanisms, and benchmarking against industry best practices to help identify and address inefficiencies. 3 Overcoming Major Challenges in the Process to Maximize Efficiency 3.1 Resistance to Change Supply chain planning systems are hindered by change resistance. Employees may resist change who are comfortable with the status quo and adopt new technologies and processes less often. Organizations need a comprehensive change management plan to address stakeholder engagement, communication, and training. Implementing a change management plan starts with identifying the key stakeholders and involving them in planning to gain their buy-in and support for the changes, implementing the process of the changes using different channels to reach all stakeholders and in addition, developing training programs to prepare employees for the changes and enable them to use new technologies and processes effectively. 3.2 Legacy Systems and Silos Data Data silos and a lack of supply chain visibility are two problems that can arise when legacy systems and data are used. It also adds roadblocks in maximizing efficiency through supply chain planning software. Investing in older systems makes it challenging to gain a comprehensive view of the supply chain and informed decisions making. In addition, the systems are non-compatible with modern technology and data is stored in disconnected systems. With the help of an integrated system, all relevant information can be collected in one place, streamlining monitoring and decision-making. A data governance policy should be implemented to guarantee data quality and uniformity across all platforms. Data management, data storage, data sharing, regular monitoring and reporting on data quality are all essential components of this policy. 3.3 Inadequate Funding Insufficient funding can affect supply chain planning system efficiency; with budget constraints, organizations may struggle to invest in new technologies, hire skilled workers, or improve processes. Thus, the supply chain planning system may become obsolete, increasing costs, lead times, and customer dissatisfaction. To overcome the challenge of inadequate funding in supply chain planning, organizations must prioritize funding and strategically allocate resources by identifying the areas that require the most investment. Exploring alternative funding sources, such as grants and partnerships, can supplement existing funding and enable organizations to invest in vital initiatives that may not have been possible with limited resources. In addition, cost-cutting measures, such as process optimization and automation, can help to stretch existing funds and boost productivity. 4 Conclusion The supply chain planning system will continue to play a critical role in maximizing efficiency to revolutionize the supply chain professionals leverage emerging technologies such as AI, ML, and blockchain; understanding the process, identifying the challenges and overcoming them using the right strategies helps businesses in effective supply chain planning systems, gain a competitive advantage, improve supply chain performance and position themselves for long-term success. Furthermore, adopting a data-driven approach and a culture of continuous improvement in supply chain management planning can help organizations plan according to the future of supply chain and compete in the ever-changing global market.

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Ultimate guide to warehouse logistics: Enhance organization, movement, and management

Article | October 19, 2020

Warehouse logistics is the heart of any supply chain operation, assimilating and dispatching goods to ensure availability and timely delivery. With more consumers turning to e-commerce, it’s important for businesses of all sizes to bolster the supply chain to handle the e-commerce business model. According to research conducted by BigCommerce, the top three factors that influence consumers’ online purchasing decisions are convenience, cost and free shipping. In fact, the National Retail Federation (NRF) found that 75% of consumers expect delivery to be free even for orders under $50.

Read More
Supply Chain

Inventory Management Best Practices for Supply Chain Distribution

Article | August 17, 2023

Purchasing software and supply chain management software are often mistaken for one another, but both have distinct functionalities. While purchasing software automates the procurement process, supply chain management software executes logistical transactions and manages supplier relationships. This report identifies the similarities and differences between the two software categories to help you understand which one is better suited to your needs. What is purchasing software? Purchasing software is an online tool that allows businesses to automate the process of procuring goods and services. It includes security compliance and reporting features. Purchasing solutions offer integrated tools for invoice approval, inventory control, asset management, customer service, and work order management. They help manage contracts, analyze spending, track sales deliveries, and monitor inventory levels. They also assist in identifying bottlenecks in the purchase process, such as functions that have high expenditure. Purchasing software offers invoice processing capabilities as well. Procurement professionals and accounting teams can use the tool to generate invoices, track invoice status, and monitor expenses via detailed reports. What is supply chain management software? Supply chain management software is a software platform that allows supply chain managers to automate the entire supply chain process—from acquiring raw materials to delivering the finished goods to consumers. The software provides tools for monitoring stock levels, including raw materials, and predicting future requirements based on the current inflow and outflow of inventory. Supply chain management tools manage material handling, order fulfillment, and information tracking for stakeholders such as manufacturers, suppliers, and transport and logistics providers. They also track the returns of damaged goods, process refunds and insurance claims, and provide planning and forecasting tools for supply chain professionals. What do they have in common? Purchasing is a crucial component of supply chain management. Together, these processes significantly contribute to an organization’s procurement cycle. Despite the functionality differences, both the software categories have a few features in common, including supplier management, order management, and forecasting. Which tool is right for you? The answer to this question depends on your use case. If you’re looking for a tool that majorly focuses on acquiring supplies, opt for a purchasing software solution, as it will help you streamline the procurement cycle, maintain purchase order accuracy, and monitor supplier activities. However, if you wish to manage your entire supply chain operations, including supplier, transportation, warehouse, and inventory management, then investing in a supply chain software solution would be the right choice.

Read More
Warehousing and Distribution

Drive Insights from Upcoming Warehousing Conferences and Events

Article | June 16, 2023

Efficient demand forecasting techniques transform supply chain management, help optimize inventory levels, streamline operations, improve customer satisfaction, and achieve a competitive edge. Contents 1. How Accurate Demand Forecasting Impacts Business Operations and Profitability? 2. Navigating the Pitfalls of Traditional Demand Forecasting 2.1 Limitations of Manual Forecasting Methods 2.2 Inaccuracy and Inconsistency in Demand Prediction 2.3 Multiple Products and Markets Challenges 2.4 Influence of External Factors on Demand Forecasting 3. Advanced Demand Forecasting Techniques for Supply Chain Management 3.1 Statistical Forecasting 3.2 Collaborative Demand Planning 3.3 Demand Sensing and Real-time Data Analytics 3.4 Agile Supply Chain Management Practices 4 Summing up 1. How Accurate Demand Forecasting Impacts Business Operations and Profitability? Accurate demand forecasting plays a vital role in determining the operations and profitability of a business. By anticipating future demand, companies can more effectively plan their production, inventory management, and supply chain activities to meet customer needs while minimizing costs. Additionally, accurate demand forecasting can aid businesses in enhancing customer satisfaction by proactively meeting customer needs and expectations, improving customer experiences and increasing customer loyalty. To generate actionable insights that drive informed decision-making, businesses must leverage advanced analytics and predictive modeling techniques that combine data from various sources with industry-specific knowledge and expertise. “Businesses that leverage advanced analytics and predictive modeling techniques for demand forecasting report an average of 5% improvement in their supply chain efficiency.” (Source: A survey by Deloitte) Supply chain businesses frequently rely on sales data from the past, which may not be sufficient in the complex and rapidly changing business environment. Businesses might not observe an improvement in operations and profitability if they rely solely on conventional methods. 2. Navigating the Pitfalls of Traditional Demand Forecasting As businesses strive to optimize their supply chain operations and meet customer demand, traditional demand forecasting methods can often hinder their efforts. In this context, it is essential to navigate the pitfalls of such techniques to achieve success in supply chain management. 2.1 Limitations of Manual Forecasting Methods Manual forecasting methods have limitations that can affect demand forecasting accuracy in supply chain management. Frequently based on historical data, these methods can overlook emerging trends in supply chain management and alterations in customer behavior. In addition, manual processes are time-consuming, prone to error, and incapable of incorporating real-time supply chain data. As a result, businesses struggle to optimize supply chain operations and meet customer demand. In addition, traditional forecasting methods can influence the ability to accurately predict demand, resulting in overstocked inventory, delivery delays, and, ultimately, poor customer satisfaction. Inaccurate demand forecasts can also result in poor purchasing decisions and increased carrying costs, negatively impacting profitability. 2.2 Inaccuracy and Inconsistency in Demand Prediction Inaccuracy and inconsistency in demand forecasting pose significant obstacles in managing the supply chain. This is the case in the dynamic business environment, where market conditions can change rapidly, making it challenging for companies to keep up with shifting demand patterns. As traditional demand forecasting methods depend heavily on historical data, they produce inaccurate forecasts that do not reflect real-time market changes. In addition, inconsistency in demand forecasting can also result in a mismatch between supply and demand, leading to missed opportunities or excess inventory. As a result, creating an effect on company’s bottom line in addition to customer satisfaction. 2.3 Multiple Products and Markets Challenges Accurate demand forecasting is crucial to the success of supply chain management. When there are multiple products and markets to manage, it becomes a challenge for traditional demand forecasting. Different products and markets may have varying demand patterns and drivers, making it difficult for businesses to accurately forecast demand. Manual processes and siloed data can hinder visibility and the ability to identify cross-product or cross-market trends, making supply chain optimization operations and meeting customer demand more complex. Managing multiple products and markets is one of the challenges of traditional demand forecasting when businesses operate in various markets with varying customer preferences and demand patterns for products. 2.4 Influence of External Factors on Demand Forecasting External factors can significantly impact the demand forecasting accuracy for supply chain optimization. These factors are often unpredictable, and conventional methods may not account for them. The external factors affecting the supply chain include natural disasters, economic recessions, and sudden changes in consumer behavior. In addition, political and regulatory modifications, such as tariffs or trade agreements, can affect the supply and demand of particular products. Therefore, businesses must incorporate these external factors into their demand forecasting models and advance the process, as traditional demand forecasting methods cannot predict accurate future demand patterns and ensure optimal supply chain operations. 3. Advanced Demand Forecasting Techniques for Supply Chain Management To avoid the above-mentioned pitfalls, companies need to adopt advanced demand forecasting techniques that enable capturing and analyzing huge data from various sources to generate accurate and real-time demand forecasts. 3.1 Statistical Forecasting Statistical forecasting is an advanced method for demand forecasting in supply chain management that utilizes complex algorithms and statistical models to analyze historical data, identify trends, and generate forecasts. This method employs numerous statistical techniques, including regression analysis, time-series analysis, and exponential smoothing, among others. Statistical forecasting can help businesses overcome some of the limitations of traditional manual forecasting methods because it is more objective, data-driven, and capable of identifying trends and patterns which are not apparent with manual forecasting methods. As a result, by utilizing statistical forecasting, businesses can increase demand forecasting accuracy, optimize inventory management, and better align supply and demand, resulting in enhanced customer satisfaction, greater efficiency, and lower costs. 3.2 Collaborative Demand Planning Collaborative Demand Planning combines intensive forecasting algorithms to predict future demand and a set of ML techniques to achieve better demand forecasting. It involves collaboration between suppliers, customers, and other stakeholders. The advanced data and insights sharing technique improve the comprehensive understanding of demand drivers and trends, leading to more accurate demand forecasting. The collaborative approach enables real-time adjustments to demand forecasts, which can help businesses respond promptly to market conditions and customer demand changes. In addition, using advanced analytics and machine learning algorithms can help identify patterns and trends that would otherwise go unnoticed. That enables businesses to optimize inventory levels, reduce under and overstocking, and enhance customer service levels. In the dynamic business environment, it helps transform the supply chain that is better equipped to meet the ever-changing demands of customers. 3.3 Demand Sensing and Real-time Data Analytics Demand Sensing and Real-time Data Analytics are advanced demand forecasting techniques that can assist businesses in overcoming the challenges that multiple products and markets pose to the supply chain. By utilizing real-time data from various sources, such as social media, point-of-sale systems, and weather reports, businesses can better understand customer demand patterns, adjust inventory and production planning, reduce delay, and increase responsiveness. In addition to implementing demand sensing, businesses can begin with sell-in data obtained from supply chain planning or an ERP system in supply chain management and then incorporate all relevant data sources and external factors to broaden the forecasting horizon. 3.4 Agile Supply Chain Management Practices Agile supply chain management practices are a collection of methodologies and strategies emphasizing supply chain operations' adaptability, responsiveness, and flexibility. These practices involve utilizing real-time data analytics, collaborative planning, and other advanced technologies to enable businesses to respond swiftly to changes in customer demand, market conditions, and other external factors. Adopting an agile model allows the organization to act swiftly and decisively and achieve successful business outcomes despite adverse conditions. Agile supply chain management practices can give companies greater visibility and control over their supply chains, enabling them to adapt more effectively and efficiently to fluctuating market conditions in the context of external factors influencing demand forecasting. By cultivating a culture of continuous improvement, innovation, and customer value, agile supply chain management practices have the potential to transform into modern supply chain. 4. Summing up Demand forecasting accuracy is crucial for supply chain management and profitability. Manual forecasting methods hinder operational optimization and customer demand fulfillment. Customer satisfaction, purchasing decisions, and carrying costs suffer from inaccurate forecasting. In order to avoid these pitfalls, businesses can leverage statistical forecasting and collaborative demand. These methods recognize trends and patterns, optimize inventory levels, reduce over- and under-stocking, and improve customer service using advanced analytics and machine learning algorithms. As the supply chain evolves and becomes more complex, businesses must adopt advanced demand forecasting techniques. Implementing these techniques will enable businesses to optimize their supply chain management by better-aligning supply and demand, resulting in increased productivity, decreased costs, and ultimately increased profits.

Read More
Warehousing and Distribution

Top 10 Warehouse Automation Tools to Optimize Supply Chain Performance

Article | July 11, 2023

Automated supply chain planning maximizes efficiency and helps achieve long-term success by addressing challenges, highlighting the benefits, and offering insights to optimize business performance. Contents 1 Supply Chain Planning System Efficiency Maximization 2 Key Steps of Supply Chain Planning to Boost Efficiency 2.1 Implement Advanced Analytics Tools 2.2 Streamline Communication and Collaboration 2.3 Automate Processes 2.4 Consistency in Performance Improvement 3 Overcoming Major Challenges in the Process to Maximize Efficiency 3.1 Resistance to Change 3.2 Legacy Systems and Siloed Data 3.3 Inadequate Funding 4 Conclusion 1 Supply Chain Planning System Efficiency Maximization To compete and succeed in an ongoing complex and dynamic global market, companies must maximize the efficiency of their supply chain planning systems, which help manage the flow of goods and services from suppliers to customers, optimize resources and information to meet customer demands and minimize costs and risks. An adequate supply chain planning system can increase customer satisfaction, profitability, agility, and risk management. Moreover, by reducing costs, increasing productivity, and enhancing responsiveness to market demands, maximizing efficiency can help businesses remain competitive. As a result, businesses can gain a substantial competitive edge and position the organization for long-term success by optimizing their supply chain planning systems. 2 Key Steps of Supply Chain Planning to Boost Efficiency Businesses can significantly boost efficiency in their supply chain planning by implementing advanced analytics tools, streamlining communication and collaboration, automating processes, and ensuring consistency in performance improvement. 2.1 Implement Advanced Analytics Tools Implementing advanced analytics in supply chain planning is key to improve supply chain efficiency. Advanced analytics tools, including demand forecasting, production planning and inventory management, can help organizations leverage large volumes of data to extract insights that enable better decision-making. The insights can be used to optimize production planning, reducing costs and increasing efficiency. In addition, it also enables businesses to detect and respond to supply chain disruptions on operations. 2.2 Streamline Communication and Collaboration Managing and streamlining communication becomes essential for supply chain businesses, as it leads to greater agility and enables pipelines to adapt to changes in organizational structures. Leveraging cloud-based communication platforms, video conferencing, and collaboration tools enable real-time information sharing and collaboration across different teams and stakeholders. By enhancing communication and collaboration, businesses can better align their supply chain objectives, reduce communication gaps, and enhance decision-making. 2.3 Automate Processes The integration of technologies such as order processing, inventory management, and shipment tracking under warehouse automation and logistics automation produces a vast amount of data, making it challenging for businesses to process data manually. To enhance efficiency, automating supply chain planning processes has become essential. Automating the process has eliminated multitasking, including managing goods flow, tracking road progress, and ensuring safe delivery, which was previously required in the manual process. By automating processes, supply chain management can be streamlined, leading to reduced lead times, minimized costs, and improved efficiency. 2.4 Consistency in Performance Improvement Improving the supply chain is not a one-time fix, but a process that must be reviewed and optimized frequently. By implementing technology, businesses can continuously collect and analyze warehouse inventory management performance to identify areas for further efficiency gains and improved order accuracy. In addition, establishing a framework for continuous optimization involves regular performance reviews, feedback mechanisms, and benchmarking against industry best practices to help identify and address inefficiencies. 3 Overcoming Major Challenges in the Process to Maximize Efficiency 3.1 Resistance to Change Supply chain planning systems are hindered by change resistance. Employees may resist change who are comfortable with the status quo and adopt new technologies and processes less often. Organizations need a comprehensive change management plan to address stakeholder engagement, communication, and training. Implementing a change management plan starts with identifying the key stakeholders and involving them in planning to gain their buy-in and support for the changes, implementing the process of the changes using different channels to reach all stakeholders and in addition, developing training programs to prepare employees for the changes and enable them to use new technologies and processes effectively. 3.2 Legacy Systems and Silos Data Data silos and a lack of supply chain visibility are two problems that can arise when legacy systems and data are used. It also adds roadblocks in maximizing efficiency through supply chain planning software. Investing in older systems makes it challenging to gain a comprehensive view of the supply chain and informed decisions making. In addition, the systems are non-compatible with modern technology and data is stored in disconnected systems. With the help of an integrated system, all relevant information can be collected in one place, streamlining monitoring and decision-making. A data governance policy should be implemented to guarantee data quality and uniformity across all platforms. Data management, data storage, data sharing, regular monitoring and reporting on data quality are all essential components of this policy. 3.3 Inadequate Funding Insufficient funding can affect supply chain planning system efficiency; with budget constraints, organizations may struggle to invest in new technologies, hire skilled workers, or improve processes. Thus, the supply chain planning system may become obsolete, increasing costs, lead times, and customer dissatisfaction. To overcome the challenge of inadequate funding in supply chain planning, organizations must prioritize funding and strategically allocate resources by identifying the areas that require the most investment. Exploring alternative funding sources, such as grants and partnerships, can supplement existing funding and enable organizations to invest in vital initiatives that may not have been possible with limited resources. In addition, cost-cutting measures, such as process optimization and automation, can help to stretch existing funds and boost productivity. 4 Conclusion The supply chain planning system will continue to play a critical role in maximizing efficiency to revolutionize the supply chain professionals leverage emerging technologies such as AI, ML, and blockchain; understanding the process, identifying the challenges and overcoming them using the right strategies helps businesses in effective supply chain planning systems, gain a competitive advantage, improve supply chain performance and position themselves for long-term success. Furthermore, adopting a data-driven approach and a culture of continuous improvement in supply chain management planning can help organizations plan according to the future of supply chain and compete in the ever-changing global market.

Read More

Ultimate guide to warehouse logistics: Enhance organization, movement, and management

Article | October 19, 2020

Warehouse logistics is the heart of any supply chain operation, assimilating and dispatching goods to ensure availability and timely delivery. With more consumers turning to e-commerce, it’s important for businesses of all sizes to bolster the supply chain to handle the e-commerce business model. According to research conducted by BigCommerce, the top three factors that influence consumers’ online purchasing decisions are convenience, cost and free shipping. In fact, the National Retail Federation (NRF) found that 75% of consumers expect delivery to be free even for orders under $50.

Read More
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Spotlight

Weber Logistics

Founded in 1924, Los Angeles-based Weber Logistics is the leading logistics provider on the West Coast and has evolved into a nationwide provider of logistics solutions. We are a privately-owned and asset-based provider. This allows us the flexibility to quickly adapt to our customer's changing needs.

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AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

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Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

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Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

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Logistics, Supply Chain, Transportation

AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

Read More

Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

Read More

Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

Read More

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